Auto Loan Problems Drive Money Store to Make Change.(Originated from The Sacramento Bee, Calif.)

Sep. 17--Less than a month after the resignation of the head of the Money Store Inc.'s auto loan division in Sacramento, the financial services company acknowledged Tuesday that the unit has been operating poorly and it plans to take corrective steps.

As evidence of "inadequate performance," the Money Store's chief executive, Marc Turtletaub, cited growing losses and repayment delinquencies among customers borrowing to buy autos -- primarily used vehicles.

For the quarter ended June 30, the Money Store was forced to write off as losses nearly 4 percent of its auto loans. That's expected to increase to 7 percent by the end of September, according to …